Bussiness
As Ethiopia opens up banking sector to foreign players, there is an important caveat
- Foreign banks seeking to operate in Ethiopian following liberalisation of the country’s banking sector would be required to do so in partnership with local banks.
- Business Insider Africa observes that this could give room to some mergers and acquisitions in the Ethiopian banking sector.
- Ethiopia is in the process of liberalising its banking sector, with the aim of ending a decades-long restrictive banking policy that has prevented foreign banks from operating in the country.
One of the newly proposed rules that would guide Ethiopia’s banking sector liberalisation is that foreign banks hoping to operate in the Horn of Africa country must do so in partnership with local banks.
READ: [Op-Ed] On the road to a digital economy, Ethiopia is ramping up activity
This was disclosed by the lead consultant that is overseeing the liberalisation process, who also mentioned that only regional banks are eligible to the opportunity for now.
“The opening up might only be limited to regional banks in a joint venture basis with local banks… That will be easily manageable for the central bank. The first target is to boost the foreign currency inflow. There are many legal framework revisions underway and many are in a draft stage,” the consultant was quoted by Ethiopian newspaper The Reporter.
READ: Why is the dollar shortage crisis in Africa getting worse by the day?
The important caveat is coming just months after the Ethiopian Government announced that it had constituted a liberalisation committee whose job it is to establish the modalities that would guide the liberalisation process.
The implication, therefore, is that we might be seeing some mergers and acquisitions in the Ethiopian banking sector anytime soon.
Business Insider Africa reported earlier that the Ethiopian banking sector liberalisation committee has begun working towards replacing the country’s decades-old financial services code with a new one.
READ: Ethiopia is in the process of establishing its own stock exchange
The primary aim of the new financial services code is to end Ethiopia’s restrictive banking policy which has, up till now, prevented foreign banks from investing and setting up shops in the country.
The first draft of the new code is expected to be ready by December 2022. It will, among other things, stipulate the modalities for foreign banks to operate in Ethiopia.
READ: Amid fintech boom, report details how African banks can still gain an edge
Recall that Prime Minister Abiy Ahmed was the first to disclose Ethiopia’s ongoing plan to open its banking sector to foreign banks. Last month, he declared that “we will bring foreign banks because we need additional wealth and hard currency. Regarding this, the government is now preparing a policy amendment. Once preconditions are met and banks are prepared, we will (implement) that.”
The banking reforms in Ethiopia presents an opportunity for some of Africa’s biggest banks to position themselves in the Horn of Africa country.
READ: Paga announces official launch in Ethiopia following regulatory approval
Source: www.pulse.com.gh
Bussiness
Charterhouse announces the Business Elevate Series with launch of ‘The Gastro Feastival’
Charterhouse, Ghana’s leading event management and audiovisual production company, is marking its 25th anniversary of delivering top-tier events with the introduction of an exciting new initiative: The Business Elevate Series.
This innovative series is designed to shine a spotlight on key economic sectors through a series of dynamic B2B and B2C events, including industry conferences, seminars, and exhibitions.
Kicking off the series is The Gastro Feastival, a groundbreaking annual food industry festival that will showcase Ghana’s rich and diverse food ecosystem and agribusinesses from production to consumption.
The launch event will take place on Friday, March 7, 2025, from 4:00 PM to 6:00 PM at the Grand Arena (Accra International Conference Centre).
This landmark event will bring together food industry stakeholders, enthusiasts, experts, and organizations to highlight the food industry’s critical role in Ghana’s socio-economic development and culture.
It will also promote food security, digital innovation, women’s empowerment, youth employment in agribusiness, and sustainable practices.
The Business Elevate Series is a game-changing initiative designed to foster growth and transformation across multiple sectors. With Charterhouse’s deep expertise in organizing impactful meetings, the series aims to unlock investment opportunities, drive innovation, and catalyze social and economic change.
The Gastro Feastival will address six major pillars that drive industry transformation: Investment Opportunities; Job Creation; Innovation, Technology, and Digitization; Youth Involvement (entrepreneurship and career opportunities); Women’s Involvement; Environmental and Social Governance (ESG); Export Opportunities
The event will also establish a Resource Bank, spotlighting key growth opportunities and ensuring the effective allocation of resources to transform Ghana’s food industry.
The Gastro Feastival is a Charterhouse initiative, with Kosmos Innovation Centre as the technical partner.
Bussiness
Ghana’s GDP shows economy is fast recovering despite DDEP – Finance Ministry
Ghana’s Gross Domestic Product (GDP) indicates a rapid economic recovery despite global challenges and ongoing debt restructuring, according to the Ministry of Finance (MoF).
The Ministry in a statement today indicated that latest data from the Ghana Statistical Service (GSS), cumulative economic growth for the second quarter (Q2) of 2024 reached 6.9%, a notable increase from the 4.7% recorded in the first quarter of 2024.
The MoF statement further noted that, “The economy’s robust recovery is in response to the macroeconomic stability and growth interventions that government is pursuing under our IMF-supported Post Covid-19 Programme for Economic Growth (PC-PEG).”
According to them, the overall real GDP growth for the first half of 2024 rebounded strongly, with year-on-year GDP growth averaging 5.8% for the period, significantly higher than the 2.9% recorded in the same period in 2023.
By Edem Mensah-Tsotorme
Read full statement below
